Water Need in the United States
The pandemic's impact on water utilities in 2020 amounted to an estimated $13.9 billion, attributed to shutoff moratoria, increased residential water consumption, and higher arrearages. Moratoria on water disconnections in 34 states and additional localities led to decreased bill payments[6], exacerbated by a sharp rise in U.S. unemployment. Approximately half of all utilities lost revenue during the pandemic, making it challenging to cover costs for water and wastewater treatment, infrastructure improvements, repairs, and administrative expenses.[7] The aging water infrastructure across the country further compounds these challenges, with smaller utilities being disproportionately affected due to limited funding for repairs relative to their customer base.[8]
The inability to pay for household water is a significant and growing problem in the United States. In 2016 (the most recent multi-city study), 1 in 20 households were disconnected from water services because of nonpayment, and in some cities, as many as 1 in 5 were disconnected.[9] Water affordability challenges disproportionately impact households with low incomes, rural communities, communities of color, tribal communities, and immigrant communities.[10]
While water utility rates across the country vary significantly, research from the Legal Defense Fund indicates that all states have estimated water and sewer rates that are unaffordable for families at or below the Federal Poverty Level; these households spend more than 2-2.5% of their monthly income on water bills.[11],[12],[13] Data from the Duke University Nicholas Institute for Energy, Environment, and Sustainability indicates that in 29 states (including DC), households at or below the poverty level spend over 5% of monthly income on water and sewer bills.[14] In addition to variability in water rates across states, rates also vary significantly within states. For example, in Arizona, customers at one utility pay as little as $6.40 per month, while customers at another pay up to $365.34 per month for the same water usage level.[15]
In 2016, 1 in 20 households were disconnected from water services because of nonpayment, and in some cities, as many as 1 in 5 were disconnected.
Residential water bills have surged nearly 50% since 2010,[16] surpassing increases in electricity and gas rates, due in part to aging water infrastructure. The high costs of maintaining and repairing this infrastructure contribute to escalating water and wastewater service expenses. One Massachusetts utility partnering with LIHWAP noted that existing rates cannot cover approved projects and operating costs, requiring substantial rate hikes of 10-20%.[17] Delayed maintenance can lead to system failures, exemplified by Jackson, Mississippi's water treatment plant failure in 2022, leaving tens of thousands without clean water.[18] As utilities raise rates to address aging systems, low-income households face ongoing struggles to meet the rising costs.[19],[20]
Households that cannot pay their water bills risk disconnection.[21],[22] Lack of water access can lead to:
- poor sanitation,
- disease transmission,
- increased vulnerability of older adults, pregnant women, children, and people with chronic illnesses,
- school absenteeism[23]
Water disconnections can also negatively impact household stability through:
- Property liens
- Foreclosure or eviction (resulting from a lien)
- Economic hardship
- Financial stress
